Entrepreneurship and Small Business (ESB) Certification Practice Exam

Selling goods from one business to another is known as ____ sales.

1. B2B

2. B2C

3. C2C

4. D2C

The correct answer is: B2B

Selling goods from one business to another is known as B2B sales, which stands for "Business to Business." This type of transaction involves companies providing products or services to other businesses, as opposed to individual consumers. B2B sales often operate on a larger scale compared to B2C (Business to Consumer), which focuses on sales to individual customers. In the context of B2B, relationships can be crucial—companies often engage in long-term partnerships, and transactions may involve bulk orders, contracts, or specialized services. Understanding the dynamics of B2B sales is vital for businesses looking to expand their market, as they must consider factors such as pricing strategies, relationship management, and tailored solutions to meet the needs of other businesses. Other answer choices represent different market strategies: B2C involves selling directly to consumers, C2C refers to consumer-to-consumer sales, often facilitated by platforms like eBay or Etsy, and D2C (Direct to Consumer) is where manufacturers sell directly to consumers without intermediary retailers. Each of these sales models has distinct characteristics, but in the context of the question, B2B is the only term that accurately describes sales transactions that occur between businesses.